Gold News

Abramovich picks up mining stock

Roman Abramovich, the Russian oligarch who owns Chelsea Football Club, has agreed a deal to buy a significant stake in a British mining company.

Mr Abramovich will pay around £200 million through his investment vehicle, Millhouse, to take control of 40 per cent of shares in Highland Gold.

Highland, which is listed on the alternative investment market (AIM), is Russia's fourth largest producer of gold.

Under the terms of the agreement, Millhouse will take control of 25 per cent of Highland shares.

It will then purchase 65 million new shares when they are issued taking its stake to 40 per cent.

This would make Millhouse the largest shareholder, overtaking Barrick Gold, which owns 34 per cent of the company.

"This transaction provides us with significant funding to enable the progress of our very active development programme at a number of key sites in our portfolio," said James Cross, Highland Gold's chairman.

"Highland Gold now has a shareholder of notable standing in Russia. This supplements our existing relationship with Barrick and creates a strong platform for exploiting our attractive asset base."

Mr Abramovich uses Millhouse to manage his interests in other mining companies, media, real estate and pharmaceutical businesses.


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